Amgen (AMGN.US) Reports Q3 2025 Non-GAAP EPS Up 1% to $5.64, Misses Analyst Estimates Amid Higher Operating Expenses

Amgen (AMGN.US) reported third quarter 2025 financial results, with non-GAAP earnings per share (EPS) rising 1% year-over-year to $5.64. This figure, however, fell short of the analyst estimate of $5.00. Total revenues for the quarter increased 12% to $9.6 billion, reflecting strong product sales growth. The company generated $4.2 billion in free cash flow, an increase from $3.3 billion in the prior year's third quarter, primarily due to timing of working capital and lower interest payments.

Product Sales Drive Revenue Growth

Total revenues for the third quarter of 2025 increased by 12% year-over-year to $9.6 billion. This growth was largely attributed to a 12% increase in product sales, driven by 14% volume growth, despite a 4% lower net selling price. Notably, sixteen products achieved double-digit sales growth, including Repatha® with a 40% increase to $794 million, EVENITY® up 36% to $541 million, and TEZSPIRE® sales rising 40% to $377 million.

Several key products contributed significantly to this performance. UPLIZNA® sales surged 46% year-over-year to $155 million, primarily due to volume growth, while TAVNEOS® sales increased 34% to $107 million. Oncology product BLINCYTO® also showed strong growth, with sales increasing 20% to $392 million, driven by 31% volume growth. IMDELLTRA®/IMDYLLTRA™ generated $178 million in sales, experiencing a 33% quarter-over-quarter increase.

Operating Expenses and Profitability Trends

Non-GAAP operating expenses increased 18% year-over-year in the third quarter of 2025. Research and Development (R&D) expenses saw a significant 31% increase, driven by higher spending on later-stage clinical programs, particularly those related to MariTide. Selling, General & Administrative (SG&A) expenses also rose by 9%, attributed to higher general and administrative costs.

Despite the increase in revenues, non-GAAP operating margin decreased by 2.5 percentage points to 47.1%. The non-GAAP tax rate increased by 4.8 percentage points to 18.2% due to changes in earnings mix. These factors partially offset the higher revenues, contributing to the modest 1% increase in non-GAAP EPS.

Management's Financial Outlook for 2025

For the full year 2025, Amgen anticipates total revenues to be in the range of $35.8 billion to $36.6 billion. The company projects non-GAAP EPS to be between $20.60 and $21.40, with a non-GAAP tax rate in the range of 15.0% to 16.5%. Capital expenditures are expected to be in the range of $2.2 billion to $2.3 billion, and share repurchases are not anticipated to exceed $500 million.